NNPC finalizing USD6 B worth of oil-for-product swaps

MOSCOW (MRC) -- Nigeria's state oil company is in the final stage of signing USD6 B worth of deals to exchange more than 300,000 bpd of crude oil for imported gasoline and diesel, sources with direct knowledge of the process told Reuters.

The contracts, which come three months later than expected, include three more pairs of companies than last year, reflecting Nigeria's increased reliance on NNPC for fuel imports.

A lack of local refining capacity means Nigeria is reliant on imported gasoline, kerosene and other petroleum products, and the oil price crash and militant attacks on Nigeria's oil industry have starved independents of dollars for fuel imports.

At least four of the 10 groups have signed contracts, set to begin from July 1, with the rest expected to do so by Friday, the sources said.

The NNPC, which is due to approve them by the end of the week, did not immediately respond to a request for comment.

The fuel quality in the final agreements was not immediately clear, but July 1 is the same deadline the country set for switching over to higher quality, lower-sulfur fuels that create less toxic fumes.

Sulphur levels were a major sticking point in the negotiations. The Ministry of Environment and the Standards Organization of Nigeria, the body responsible for setting requirements for imported goods, promised a switch to 150 ppm gasoline and 50 ppm diesel.

Some sources said the new standards would be applied. Others reported that three different gasoline specifications—1,500 ppm, 500 ppm and 150 ppm—would all be included in the contracts, giving NNPC options on which to import.

This year's deal includes international trading houses, not just oil refineries. The 2016 contracts included only companies with refineries in an effort to cut out middlemen.

The latest list contains several companies from 2016, including Varo Energy, Societe Ivorienne de Raffinage (SIR), Total and Cepsa. Italy's ENI and India's Essar, which won 2016 contracts, are absent from this year's list, while Socar and Mercuria are new additions.

The contracts were initially planned to begin in April but last year's swap deals were extended at least twice in order to give NNPC more time to negotiate. NNPC had previously said this year's contracts would exchange up to 800,000 bpd of crude oil, though at some 40% of peak exports that target was seen by markets as unlikely.

NNPC has been forced to ramp up its own fuel imports to around 80% of Nigeria's consumption, according to figures from the company and oil traders.

Nigeria has substantially increased its refining output this year but the first quarter average was still only about 25% of its 445,000 bpd capacity.

It has struggled to run them at higher rates due to years of neglect and consistent theft and sabotage of the pipelines feeding the refineries.
MRC

ExxonMobil, Sabic sign agreement for next phase of proposed US petchem project

MOSCOW (MRC) -- Affiliates of ExxonMobil Corporation and Sabic signed an agreement to conduct a detailed study of the proposed Gulf Coast Growth Ventures project in Texas and begin planning for front-end engineering and design work, said ExxonMobil.

The agreement was signed during the Saudi-US CEO Forum in Riyadh in the presence of Yousef Al-Benyan, Sabic vice chairman and chief executive officer, and Philippe Ducom, president, chairman and chief executive officer of ExxonMobil Saudi Arabia Inc. Also in attendance were Prince Saud bin Abdullah bin Thenayan Al-Saud, Sabic chairman, and Darren W. Woods, chairman and chief executive officer of Exxon Mobil Corporation.

“This agreement represents an important step in the progression of the Gulf Coast Growth Ventures project," said "Ducom. "We have a long and successful relationship with SABIC, which will be enhanced by this potential project that will create value for our companies and our communities."

In April 2017, ExxonMobil and Sabic selected a site in San Patricio County, Texas, for the proposed petrochemical complex that would include an ethane steam cracker capable of producing 1.8 MMtpy of ethylene, a monoethylene glycol unit and two polyethylene units.

The project is one of 11 major chemical, refining, lubricant and liquefied natural gas projects associated with ExxonMobil’s Growing the Gulf initiative in the United States that have been made possible by the abundance of low-cost US natural gas.

ExxonMobil’s projects, once completed and operating at mature levels, are expected to have far-reaching and long-lasting benefits. Projects planned or under way are expected to create more than 35,000 construction jobs and more than 12,000 full-time jobs.

ExxonMobil and Sabic have collaborated on several petrochemical JVs in Saudi Arabia, including the Al-Jubail Petrochemical Company and Saudi Yanbu Petrochemical Company. Most recently, the companies constructed world-scale specialty elastomers facilities at the Al-Jubail joint venture complex to help meet the growing demand for rubber-based industrial and automotive products.

MRC

Bostik acquires floor preparation systems from CGM


MOSCOW (MRC) -- Arkema announces the acquisition by Bostik of CMP Specialty Products, the flooring and floor preparation business of US based specialist CGM, said the company on its website.

This business, which generated UD15 million sales in 2016, offers strong synergies with Bostik. This acquisition fits perfectly with Bostik's strategy to expand in the growing US construction market and to offer its customers a complete range of innovative solutions for the flooring market. This acquisition is also fully part of the Group strategy to accelerate its growth in specialty adhesives with bolt-on acquisitions.

Based outside of Philadelphia, PA, CMP's floor preparation systems products offer an advanced range of flooring surface preparation repair patches, leveling compounds and primers for both commercial and residential flooring applications.

These products will enable Bostik to accelerate its development in the fast growing floor preparation market.

"We are very pleased to welcome the CMP Specialty Products teams. This acquisition will support our strategy to provide our customers with the most innovative flooring systems. CMP teams will bring their recognized expertise within the commercial flooring sector with high quality and highly performing products. We look forward to leveraging this expertise to better serve our customers within the US market".
MRC

Rotary Engineering awarded EPC contract for Jurong Port tank terminals project

MOSCOW (MRC) --- Rotary Engineering has won a USD140-million engineering, procurement and construction (EPC) contract from Jurong Port Tank Terminals for a liquid bulk storage project in Singapore, as per Apic-online.

Rotary's scope of work includes constructing a tank farm with 19 tanks for clean petroleum products storage, pump stations, valve manifolds, firefighting system, slop and waste water system, utilities, buildings, jetty topsides, and interconnecting pipeline from Jurong Port Tank Terminal to Oiltanking's tank terminal.

The project, a joint venture of Jurong Port Singapore Holding and Oiltanking Investment Holdings, is designed to store and handle both clean petroleum products and chemicals. It is located directly opposite the Jurong Island petrochemical hub and will be connected to it via pipelines.

With an initial capacity of 232,000 cu m, the new terminal has the potential to expand by an additional 230,000 cu m. It will be supported by jetties and a draft of 16 meters, capable of berthing vessels up to 120,000 dwt. A schedule for the project was not given.

As MRC reported earlier, in September 2016, Jacobs Engineering Group received a contract from Singapore Refining Company Private Ltd. (SRC), a JV between Singapore Petroleum Co. and Chevron, to provide services for an upgrade project at SRC’s refinery in Jurong Island, Singapore.

Besides, continuing the company's strategy to add production facilities close to growing demand, Celanese Corporation, a global technology and specialty materials company, began production in its newest vinyl acetate ethylene (EVA) production unit. The unit is located at the Celanese manufacturing facility on Jurong Island, Singapore, and will support the growing demand for ecologically friendly materials in the Southeast Asia region including Australia, India and New Zealand.
MRC

AkzoNobel and Atul to start MCA production in India in 2019

MOSCOW (MRC) -- AkzoNobel and chemicals manufacturing company Atul have formally agreed the joint venture partnership announced last year for the production of monochloroacetic acid (MCA) in India. The companies will establish a new plant at Atul’s facility in Gujarat by first quarter 2019, with each partner holding a 50% stake in the joint venture, to be registered as ANAVEN, said the company on its website.

As well as building on AkzoNobel’s leading position in the MCA market – with plants in the Netherlands, China, Japan and the US – the partnership will also enhance Atul’s status as a key global supplier of the herbicide 2,4-D, which uses MCA as a key raw material.

"The ANAVEN partnership will contribute to our vision of driving profitable growth for AkzoNobel Specialty Chemicals in India, which is an important growth market," said Knut Schwalenberg, Managing Director of AkzoNobel’s Industrial Chemicals business. "Our partnership with Atul is part of an asset light strategy to expand our leading position in MCA through shared incremental investments."

Sunil Lalbhai, Chairman and Managing Director of Atul, added: "We are delighted to partner with AkzoNobel to bring state-of-the-art technology for MCA to India from a world class company and develop a long-lasting relationship with AkzoNobel to create value for all the Stakeholders. The ANAVEN project will be in sync with the ‘Make in India’ initiative of the Government of India."

The partnership will use chlorine and hydrogen manufactured by Atul to produce MCA, taking advantage of both Atul’s existing infrastructure and the leading eco-friendly hydrogenation technology of AkzoNobel. From an initial annual capacity of 32,000 tons per year at start-up, the plant has been designed for future expansion to 60,000 tons per year. The facility will produce enough MCA to meet Atul’s growing demand for MCA and supply the expanding Indian market.

MCA is an essential building block in the chemical industry and is used in a wide variety of chemicals. For example, AkzoNobel customers use MCA to produce thickening agents for the food, oil, mining, personal care and detergent industries. It is also used in agrochemicals, adhesives, pharmaceuticals, thermo-stabilizers, surfactants and cosmetics.
MRC